Deal signed for $500m Chaka Housing Project in Addis Ababa ...Middle East

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Deal signed for $500m Chaka Housing Project in Addis Ababa
Agreement has been reached on a $500m housing project that will build 4,175 homes in the Ethiopian capital Addis Ababa, according to Ethiopian website The Reporter.

The Chaka Housing Project brings together private and public-sector developers and Ethiopia’s Finance Ministry in what will be the second largest housing scheme in the country.   

The scheme will be part of Chaka Satellite City, an urban development spread over 503ha of the Yeka Hill district of northeastern Addis Ababa. The estimated cost of the entire project is somewhere between $2.2bn and $3.7bn.

    The scheme will include a “National Palace” that will serve as the Ethiopian president’s official residences, a “Sky View Hotel” and guesthouses for visiting dignitaries, some 29km of roads and three artificial lakes. As well as the residential component, there will be shopping malls, healthcare facilities and business centres.

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    The Addis Ababa City Administration will manage the scheme. The palace will be built by the Ethiopian Construction Works Corporation, the hotel will be built by the Chinese Government Construction Corporation and the roads will be built by the Ethiopian Roads Administration.

    Chaka has, however, proved controversial. According to the Ethiopian Business Review, it has attracted praise and criticism in equal measure. It has been championed by Prime Minister Abiy Ahmed, but opponents point out issues with transparency.

    The Review notes: “At its core, this ambitious endeavour aspires to craft new towns and cities that resonate with principles of sustainability and equity. While lauded for its ambitious goals, the project is under the scrutiny of sceptics who raise essential concerns about its lack of inclusivity in the planning process.”

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    Further reading:

    Ethiopia restarts scheme to build tallest tower in sub-Saharan Africa Investors pump $160m into Addis Ababa special economic zone Rosatom signs agreement for nuclear science centre in Ethiopia

    Deal signed for $500m Chaka Housing Project in Addis Ababa Global Construction Review.

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